On October 20, 2023, we obtained audited financial statements back to Fiscal Year 1990 for the Incline Village General Improvement District. Analyzing the data, we can now state that the fraud explained in Cooking the Books (Part 1) has been ongoing since 1990, and likely before that time. In that article, we explained that IVGID had improperly capitalized costs as LAND, and that this scheme is one of the ten most common fraud schemes involving financial statements. We analyzed data from audited financial statements CAFR/ACFR 2009 to 2022. With the older CAFRs obtained (1990 – 2007: links at end of … Continue reading →

Organizations “cook the books” when they use accounting schemes and tricks to falsify their financial statements (i.e., their books) to make their results appear better than they actually are. One of the ten most common schemes: “Improper capitalization of expenses occurs when a company capitalizes current costs that do not benefit future periods. By doing so, a company will understate its expenses in the period and overstate net income. The most well-known example of this scheme involved WorldCom, in which the company overstated its net income by more than $9 billion by, among other accounting tricks, improperly capitalizing operating expenses.” (National … Continue reading →

Only registered voters who actually voted in the election in which the subject of the recall was elected may sign a petition to recall, per NRS 306.020(3). In Nevada Hearings April 2019, Senator James Ohrenschall said, “Duplicate signatures, signatures of those not living in the appropriate district or voting in the previous election, and even fake or forged signatures have all been reported.” Of an initial  preliminary list obtained of 1500 petition signer names, the Village Alliance found a substantial number of names that were not voters in the 2020 election, as well as some duplicates. Some of those names … Continue reading →

by Paul Smith Perhaps you remember Incline Village and Crystal Bay before it became a community of mini-hotels and party houses? Well, that change came because your local realtor, business operators, and STR (short-term rental) folks supported Washoe County in approving licenses and then not enforcing STRs regulations. Make no mistake; STRs are uniformly ruining the quality of neighborhoods and creating an ecological disaster for Lake Tahoe – all in the name of “more tourists equals more profit”. Starting with the introduction of County licensed STRs (short-term rentals of less than 28 days) in 2020-21, the Incline Village/Crystal Bay living … Continue reading →

The following are public comments made during the Incline Village General Improvement District Board meeting on August 9, 2023.  CLICK FOR AUDIO RECORDING ****** Chris Nolet, Lakeshore Boulevard, Audit Committee Chair   In three minutes, I can’t possibly address the current state of complete disrepair faced by our Director of Finance, Bobby Magee, and his few team members. His memo to the board package tonight provided some insight into the rather frightening circumstances they face.   No bank reconciliations for one year, an out of balanced GL [General Ledger] that has not been closed for the past two months. An … Continue reading →